September 13, 2012
Elko, NV & Vancouver, BC
— September 13, 2012 — Klondex Mines Ltd. (TSX: KDX and OTCQX: KLNDF) today is pleased to announce the appointment of mining executive Paul Andre Huet as President, Chief Executive Officer and Director of the Company. On the Board of Directors, Mr. Huet takes the place of Walied Soliman who has served Klondex as an interim Director since late June.
An expert in narrow vein gold mining, Mr. Huet brings over 25-years of experience in highgrade mining. His underground, gold mine development and operating experience will add value to Klondex and its Fire Creek underground gold project in North Central Nevada. Mr.Huet served as General Manager at the Hollister mine for five years leading the team in building and permitting the operation. Mr. Huet was also Mine Manager at Newmont’s Midas Mine and served in several roles during his seven-year tenure. Both Hollister and Midas are near Fire Creek. Mr. Huet comes to Klondex from Premier Gold Mines Limited, where he served as Chief Operating Officer and oversaw that company’s gold projects, which include the Cove and Saddle projects in Nevada and the narrow high-grade Hardrock Mine along the Trans Canada highway.
Mr. Huet replaces William Matlack, who has served as Klondex’s interim CEO since July 2012 and will remain on Klondex’s Board. In late June, Klondex elected a new Board of Directors that collectively controls over 8 million Klondex common shares. The Board is focused on refining the strategic direction and senior leadership of the Company, with Mr. Huet’s appointment being a major step in the process.
Klondex Interim Chairman, Blair Schultz, commented, “Attracting Paul Huet to Klondex and Fire Creek is a huge win for the Company. Paul brings directly relevant experience, leadership and accomplishment across all aspects of the development of high-grade underground vein gold mines in Nevada. In addition, he has impressive corporate-level strategic development, management and finance experience. Importantly, he shares our enthusiasm for Fire Creek’s long-term potential, having gained a solid knowledge of the project through his participation in outside evaluations of the deposit over the years. We feel he is the perfect choice to lead Klondex and the Fire Creek project going forward.
“On behalf of Klondex, I would also like to thank Walied Soliman as well as Robert Buchan for their willingness to support Klondex and serve on the Board on an interim basis. Their input was very helpful to our consideration of Klondex’s strategy and direction.”
Mr. Huet has supervised Mine Operations, Mine Engineering, Geology and Mine Safety in Nevada. His responsibilities have ranged from managing mine engineering and geology groups, coordinating teams of mining and milling staff, designing and implementing mine and mill production plans, and acquiring and complying with full-scale mining permits.He led Great Basin Gold’s Hollister Mine in Nevada from start-up to the production of over 100,000 gold ounces per year. He also led the Hollister team in building the mine, buying and refurbishing the mill, and securing all necessary Federal and State permits. In this regard he has worked closely with the U.S. Bureau of Land Management, State of Nevada agencies, and the U.S. Mine Safety and Health Administration.
Mr. Huet earned an Honors degree in Mining Engineering Technology from Haileybury School of Mines in Ontario and an Executive MBA from the Stanford University School of Business. He was appointed as a director for the Nevada Mining Association in Jan. 2011. Mr. Huet currently serves as a Director of Source Exploration Corp. (TSX-V: SOP).
In conjunction with his joining Klondex and to align Mr. Huet’s compensation with shareholders’ interests, the Board has agreed to issue equity incentives comprised of a grant of 20,000 restricted Klondex Common Shares and 3-year options to purchase: 300,000 shares of Klondex at an “Option Price” of C$1.20 per share; 210,000 shares at C$1.44 (20% premium to the Option Price); 210,000 shares at C$1.68 (40% premium to the Option Price).
About Klondex Mines Ltd.
Klondex Mines is focused on the exploration and development of its Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling gold mining prospect located in a region of prolific gold production that is near power, transportation, mining infrastructure and several milling facilities. As of September 12, 2012, Klondex had 47.3 million shares issued and outstanding, and 59.3 million shares on a fully diluted basis.
This news release contains forward-looking statements, including about current expectations on the timing of project development. These forward-looking statements entail various risks and uncertainties, are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com
. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
On Behalf of Klondex Mines Ltd.
Investor & Media Contact:
David Collins, Toni Trigiani
Catalyst Global LLC
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